Rather, a general active partner’s self-employment is reported as a partnership payroll cost. On the other hand, the SBA is clear that partners in a partnership are ineligible for a separate PPP loan for themselves as self-employed individuals. and (4) filed or will file a 2019 Schedule C. The new rule confirms that individuals with self-employment income filing Schedule Cs are eligible for a PPP loan if they: (1) were operating on Febru(2) were “an individual with self-employment income (such as an independent contractor or a sole proprietor) ” (3) have their principal place of residence in the U.S. It alerts Schedule C filers that the 2019 Schedule C is required to accompany their PPP loan application.
Small Business Administration (SBA) issued a new interim final rule that provides further PPP guidance for self-employed individuals who report their income on the IRS Form 1040, Schedule C, Profit or Loss From Business (Schedule C).¹ The new guidance supplements the PPP first interim final rule issued on April 2 and FAQs that continue to be updated.Īccording to the SBA, the new rule “addresses eligibility issues for certain business concerns” and “applies to applications submitted under the through June 30, 2020, or until funds made available for this purpose are exhausted.”² Besides eligibility, the additional rule also clarifies: (1) how to calculate the maximum loan amount for individuals with self-employment (3) explains acceptable PPP loan uses, and (3) how loan forgiveness will be determined.
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